The Trades Union Congress (TUC) has claimed the UK government's policy is the reason it has fallen behind its rivals in the last few months.
General secretary of the body Frances O'Grady was responding to a major speech made by prime minister David Cameron regarding Britain's place in Europe.
The TUC representative called for the UK leader to outline how Britain should work with the EU to improve jobs, growth and living standards, rather than "take a cheap shot at teachers and welfare claimants by spuriously claiming they were holding Britain back in the global race".
Ms O'Grady stated "blind obedience to self-defeating austerity" is actually the reason why Britain's economic recovery has been slower than that of many major economies around the world. The UK narrowly avoided a triple-dip recession this year after the nation recorded growth of 0.3 per cent for the first quarter of the year.
Data collected by the Institute for Fiscal Studies recently showed the fall in UK wages since the coalition government came to power in May 2010 has been "unprecedented".
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